In re: Kroskie v.
In re: Kroskie v.
Opinion
5(&200(1'(' )25 )8//7(;7 38%/,&$7,21 ,QUH.URVNLHHWDO 1R 3XUVXDQW WR 6L[WK &LUFXLW 5XOH
(/(&7521,& &,7$7,21 )(' $SS 3 WK &LU
5XVLQHN Y 6FKXOW] 6Q\GHU 6WHHOH )LOH 1DPH DS
/XPEHU &R 0LFK 1:G 81,7('67$7(6&28572)$33($/6 )LQDOO\,QRWHWKDWWKHEDQNUXSWF\MXGJHjVUXOLQJLQWUXGHV XSRQ &KDVH 0DQKDWWDQjV DELOLW\ WR SUHVHUYH D SUHFLVH )257+(6,;7+&,5&8,7 PRUWJDJHYDOXHLQWKHUHDOSURSHUW\LWVHOIQRWMXVWLQWKH BBBBBBBBBBBBBBBBB PRELOH KRPH IL[WXUH &KDVH 0DQKDWWDQ DV PRUWJDJH KROGHU LV OHIW WR WKH YHUEDO DVVXUDQFHV RI FRXQVHO IRU DSSHOOHH WKDW WKH 7UXVWHH ZLOO H[HUFLVH KLV GLVFUHWLRQ WR ,QUH '$021 sDQG5(*,1$ ; GHWHUPLQH DQ mHTXLWDEOHl DPRXQW DWWULEXWDEOH WR WKH UHDO 0 .526.,( HVWDWH&KDVH0DQKDWWDQILOHGDPRUWJDJHRQERWKWKHUHDO 'HEWRUV HVWDWHDQGLWVIL[WXUHVLQDQDPRXQWWKDWZDVQRWGLYLVLEOH 1R XQGHU WKH PRUWJDJH WHUPV ,QYDOLGDWLQJ WKH PRUWJDJH BBBBBBBBBBBBBBBBBBBBBBB VHFXULW\ DW LVVXH KHUH GHSULYHV &KDVH 0DQKDWWDQ RI LWV ! RUGLQDU\ULJKWVDVDVHFXUHGOHQGHUXQGHUWKHPRUWJDJHRQ s$0(6 : %2<'&KDSWHU WKHUHDOSURSHUW\&OHDUO\WKH0RELOH+RPH&RPPLVVLRQ 7UXVWHH $FWGRHVQRWDSSO\RUSXUSRUWWRDSSO\WRWKHUHDOSURSHUW\ $SSHOODQW RQZKLFKWKHPRELOHKRPHLVVLWXDWHG Y &+$6( 0$1+$77$1 0257*$*( &25325$7,21 $SSHOOHH 1 $SSHDOIURPWKH8QLWHG6WDWHV'LVWULFW&RXUW IRUWKH:HVWHUQ'LVWULFWRI0LFKLJDQDW*UDQG5DSLGV 1RnsR$QQ&6WHYHQVRQ%DQNUXSWF\sXGJH 'RXJODV:+LOOPDQ'LVWULFWsXGJH $UJXHG 2FWREHU 'HFLGHGDQG)LOHG sDQXDU\
,QUH.URVNLHHWDO 1R 1R ,QUH.URVNLHHWDO
%HIRUH 0(55,77DQG*,/0$1&LUFXLWsXGJHV E\ VD\LQJ WKDW WKH VHFWLRQ DSSOLHV RQO\ WR 7$512:'LVWULFWsXGJH SULRULWLHV QRW WR WKH DFWXDO FUHDWLRQ RI VHFXULW\ LQWHUHVWV +RZHYHU 0,&+ &203 /$:6 H[SUHVVO\ BBBBBBBBBBBBBBBBB VWDWHVWKDWLWDSSOLHVWRWKHZKROHRI$UWLFOH RIWKH8&& m7KLV DUWLFOH GRHV QRW SUHYHQW WKH FUHDWLRQ RI DQ &2816(/ HQFXPEUDQFH XSRQ IL[WXUHV SXUVXDQW WR UHDO HVWDWH ODZl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sGHOLYHUHGWKHRSLQLRQRIWKHFRXUWLQZKLFK WKHOHJLVODWXUHHTXDWHGDQDSSOLFDWLRQIRUWUDQVIHURIWLWOH 7$512:'sMRLQHG0(55,77s SS GHOLYHUHG XQGHUWKH0RELOH+RPH&RPPLVVLRQ$FWWRDILQDQFLQJ DVHSDUDWHGLVVHQWLQJRSLQLRQ VWDWHPHQWXQGHU$UWLFOH RIWKH8QLIRUP&RPPHUFLDO&RGH LWPXVWEHGHHPHG WR KDYH LQWHQGHGZKDWLWVDLGnWKDW BBBBBBBBBBBBBBBBB 0,&+ &203 /$:6GZRXOGGRQRPRUHWKDQ 23,1,21 DQ\RWKHUILQDQFLQJVWDWHPHQWXQGHUWKH8&& BBBBBBBBBBBBBBBBB )LIWK HYHQ ZLWKRXW WKH OHJLVODWXUHjV FOHDUO\ GHFODUHG 521$/'/((*,/0$1&LUFXLWsXGJHsDPHV:%R\G OLPLWDWLRQRQWKHVFRSHRI0,&+ &203 /$:6G WKH&KDSWHUEDQNUXSWF\7UXVWHHILOHGDPRWLRQIRUVXPPDU\ WKLVFRXUWZRXOGEHREOLJDWHGWRSUHVXPHWKDWWKHOHJLVODWXUH MXGJPHQW LQ WKH 8QLWHG 6WDWHV %DQNUXSWF\ &RXUW IRU WKH GLGQRWLQWHQGE\DGRSWLQJWKH0+&$WRDEURJDWHWKHHQWLUH :HVWHUQ 'LVWULFW RI 0LFKLJDQ WKDW VRXJKW WR DYRLG &KDVH ERG\RIUHDOHVWDWHODZUHJDUGLQJPRUWJDJHVRQIL[WXUHV$V 0DQKDWWDQ 0RUWJDJH &RUSRUDWLRQjV SXUSRUWHG OLHQ RQ D WKH0LFKLJDQ6XSUHPH&RXUWVWDWHGPRUHWKDQ\HDUV PRELOHKRPHRZQHGE\WKH'HEWRUV'DPRQsDQG5HJLQD0 DJR .URVNLH7KHEDQNUXSWF\FRXUWJUDQWHGWKH7UXVWHHjVPRWLRQ 7KHOHJLVODWXUHVKRXOGVSHDNLQQRXQFHUWDLQPDQQHU IRU VXPPDU\ MXGJPHQW 7KLV MXGJPHQW ZDV UHYHUVHG RQ ZKHQ LW VHHNV WR DEURJDWH WKH SODLQ DQG ORQJ DSSHDO E\ WKH8QLWHG6WDWHV'LVWULFW&RXUWIRUWKH:HVWHUQ HVWDEOLVKHGUXOHVRIWKHFRPPRQODZ&RXUWVVKRXOG 'LVWULFWRI0LFKLJDQZKLFKKHOGWKDWWKHEDQNUXSWF\FRXUW QRW EH OHIW WR FRQVWUXFWLRQ WR VXVWDLQ VXFK EROG KDG HUUHG LQ FRQFOXGLQJ WKDW &KDVH 0DQKDWWDQjV OLHQ ZDV LQQRYDWLRQV LQYDOLG DQG WKHUHIRUH DYRLGDEOH E\ WKH 7UXVWHH )RU WKH %DQGILHOGY%DQGILHOG0LFK1: UHYjGLQSDUWRQRWKHUJURXQGV+RVNRY+RVNR
7KH +RQRUDEOH $UWKXU s 7DUQRZ 8QLWHG 6WDWHV 'LVWULFW sXGJH IRU 0LFK 1:G 6HHDOVR.RHQLJ WKH (DVWHUQ 'LVWULFW RI 0LFKLJDQ VLWWLQJ E\ GHVLJQDWLRQ Y&LW\RI6RXWK+DYHQ0LFK 1:G ,QUH.URVNLHHWDO 1R 1R ,QUH.URVNLHHWDO
)LUVW DV DSSHOOHH QRWHV VHFWLRQ GRHV QRW UHDVRQVVHWIRUWKEHORZZH5(9(56(WKHMXGJPHQWRIWKH LQFOXGHWKHILOLQJRIDPRUWJDJHRQDIL[WXUHDVRQHRIWKH GLVWULFWFRXUWDQG5(0$1'WKHFDVHZLWKLQVWUXFWLRQVWKDW PHQWLRQHGH[FHSWLRQVIURPWKHUHTXLUHPHQWRIDILQDQFLQJ WKHMXGJPHQWRIWKHEDQNUXSWF\FRXUWEHDIILUPHG VWDWHPHQW 1HYHUWKHOHVV VHFWLRQ H[SUHVVO\ SHUPLWVWKHUHFRUGLQJRIDPRUWJDJHWRVHUYHDVDILQDQFLQJ ,%$&.*5281' VWDWHPHQW 6HH 0,&+ &203 /$:6 m$ PRUWJDJH LV HIIHFWLYH DV D ILQDQFLQJ VWDWHPHQW ILOHG DV D 7KH .URVNLHV DUH WKH RZQHUV RI D )RXU 6HDVRQV PRELOH IL[WXUH ILOLQJ IURP WKH GDWH RI LWV UHFRUGLQJ LI DOO RI WKH KRPHORFDWHGRQWKHLURZQODQG$SSUR[LPDWHO\PRQWKV IROORZLQJ DSSO\ l $V D UHVXOW ILQDQFLQJ VWDWHPHQWV SULRU WR ILOLQJ IRU &KDSWHU EDQNUXSWF\ RQ 1RYHPEHU JHQHUDOO\GRQRWSURYLGHWKHH[FOXVLYHPHDQVRISHUIHFWLQJ WKH .URVNLHV UHILQDQFHG WKHLU UHDO HVWDWH DQG PRELOH DVHFXULW\LQWHUHVWLQJRRGVLQFOXGLQJIL[WXUHV KRPHE\ERUURZLQJIURP5%)LQDQFLDO0RUWJDJHV ,QF5%)LQDQFLDOVHFXUHGWKHGHEWE\UHFRUGLQJDWUDGLWLRQDO 6HFRQG WKH 0RELOH +RPH &RPPLVVLRQ $FW LWVHOI PRUWJDJH ZLWK WKH :H[IRUG &RXQW\ 5HJLVWHU RI 'HHGV RQ SURYLGHVRQO\WKDWDILOLQJXQGHUWKH$FWmLVHTXLYDOHQWWR sDQXDU\ 6LPXOWDQHRXVO\ WKH PRUWJDJH ZDV WKH ILOLQJ RI D ILQDQFLQJ VWDWHPHQW ZLWK UHVSHFW WR WKH DVVLJQHGWR&KDVH0DQKDWWDQ VHFXULW\LQWHUHVWXQGHUDUWLFOH RIWKHXQLIRUPFRPPHUFLDO FRGH l 0,&+ &203 /$:6 G HPSKDVLV 7KH EDQNUXSWF\ FRXUW IRXQG WKDW DW WKH WLPH RI WKH DGGHG $VSUHYLRXVO\VWDWHGQRGLVSXWHH[LVWVWKDWXQGHU PRUWJDJHWKHPRELOHKRPHZDVVLWXDWHGRQDIXOOFHPHQW WKHWHUPVRIWKH8&&WKHILOLQJRIDILQDQFLDOVWDWHPHQW EORFNFUDZOVSDFHIRXQGDWLRQDIIL[HGWRWKHODQG,QDGGLWLRQ RUGLQDULO\LVQRWH[FOXVLYHRIWKHILOLQJRIDPRUWJDJHDQG WKHPRELOHKRPHZDVFRQQHFWHGWRHOHFWULFDOOLQHVDSULYDWH GRHVQRWSUHYHQWFUHDWLRQRIDQHQFXPEUDQFHXSRQIL[WXUHV ZHOODQGDVHSWLFV\VWHP%RWKWKHEDQNUXSWF\FRXUWDQGWKH SXUVXDQW WR UHDO HVWDWH ODZ 6HH 0,&+ &203 /$:6 GLVWULFWFRXUWKHOGDQGWKHSDUWLHVDJUHHWKDWWKHPRELOHKRPH $VDUHVXOWWRFRQFOXGHWKDW ZDV OHJDOO\ D IL[WXUH WR WKH UHDO HVWDWH 7KHUH LV FRPSOHWH WKHZRUGmRQO\lLQVHFWLRQ SUHFOXGHVWKHILOLQJ GLVDJUHHPHQW EHORZ KRZHYHU DV WR ZKHWKHU D PRUWJDJH RIDPRUWJDJHRQDPRELOHKRPHZRXOGJLYH0,&+ &203 UHFRUGHG ZLWK WKH 5HJLVWHU RI 'HHGV SHUIHFWV D VHFXULW\ /$:6 G EURDGHU HIIHFW WKDQ DQ $UWLFOH LQWHUHVWLQDQDIIL[HGPRELOHKRPHXQGHU0LFKLJDQODZ ILQDQFLQJVWDWHPHQWDSSOLFDEOHWRDQRWKHUVRUWRIIL[WXUH 6XFKDQLQWHUSUHWDWLRQGLUHFWO\FRQIOLFWVZLWKWKHOLPLWLQJ 7KHEDQNUXSWF\FRXUWKHOGWKDW0LFKLJDQjV0RELOH+RPH ODQJXDJHFRQWDLQHGLQVHFWLRQ DVZHOODV0,&+ &RPPLVVLRQ$FW 0+&$ 0,&+ &203 /$:6 &203 /$:6 G ZKLFK ERWK GHFODUH WKDW SURYLGHV WKH H[FOXVLYH PHWKRG IRU SHUIHFWLQJ D DSSOLFDWLRQIRUWLWOHXQGHU0,&+ &203 /$:6G VHFXULW\LQWHUHVWLQPRELOHKRPHV,WUHDFKHGWKLVFRQFOXVLRQ mLVHTXLYDOHQWWRWKHILOLQJRIDILQDQFLQJVWDWHPHQWl EDVHGXSRQWKH0+&$SURYLVLRQWKDWm>D@IWHU'HFHPEHU HYHU\PRELOHKRPHORFDWHGLQWKLVVWDWHVKDOOEHVXEMHFW 7KLUGRWKHUSRUWLRQVRI$UWLFOH VSHFLILFDOO\GHFODUHWKDW WRWKHFHUWLILFDWHRIWLWOHSURYLVLRQVRIWKLVDFWl0,&+ &203 WKHDUWLFOHPD\QRWEHLQWHUSUHWHGLQDPDQQHUWKDWSUHFOXGHV /$:6 DQG WKH UHTXLUHPHQW WKDW mDQ RZQHU WKHFUHDWLRQRIDVHFXULW\LQWHUHVWWKURXJKWKHUHFRUGLQJRI QDPHGLQDFHUWLILFDWHRIWLWOHVKDOOLPPHGLDWHO\H[HFXWHDQ DPRUWJDJH8QGHU0,&+ &203 /$:6 WKH DSSOLFDWLRQLQWKHIRUPSUHVFULEHGE\WKHGHSDUWPHQWVKRZLQJ OHJLVODWXUHVSHFLILFDOO\GHFODUHVWKDWmWKLVDUWLFOHGRHVQRW WKHQDPHDQGDGGUHVVRIWKHKROGHURIWKHVHFXULW\LQWHUHVWl SUHYHQWFUHDWLRQRIDQHQFXPEUDQFHXSRQIL[WXUHVSXUVXDQW 0,&+ &203 /$:6 G D 7KH0+&$FUHDWHG WRUHDOHVWDWHODZl$SSHOOHHDWWHPSWVWRGLVWLQJXLVKVHFWLRQ D0RELOH+RPH&RPPLVVLRQZLWKZKRPDOOFHUWLILFDWHVRI ,QUH.URVNLHHWDO 1R 1R ,QUH.URVNLHHWDO
WLWOHDQGVHFXULW\LQWHUHVWVDUHWREHILOHG0,&+ &203 /$:6 BBBBBBBBBBBBB ',66(17 %HFDXVHQHLWKHU5%)LQDQFLDOQRU&KDVH0DQKDWWDQILOHG BBBBBBBBBBBBB DQ\WKLQJZLWKWKH0RELOH+RPH&RPPLVVLRQWKHEDQNUXSWF\ FRXUW FRQFOXGHG WKDW &KDVH 0DQKDWWDQ ZDV DQ XQVHFXUHG 0(55,77&LUFXLWsXGJHGLVVHQWLQJ,DPSHUVXDGHGWKDW FUHGLWRU ZLWK UHJDUG WR WKH .URVNLHVj PRELOH KRPH 7KH 'LVWULFWsXGJH+LOOPDQjVRSLQLRQDQGUHDVRQLQJLVFRUUHFWDQG EDQNUXSWF\FRXUWWKHUHIRUHJUDQWHGWKH7UXVWHHj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jVUHYHUVDORIWKHEDQNUXSWF\ ,VHHQRFRQIOLFWEHWZHHQWKHWZRSURYLVLRQV7KH0RELOH FRXUWjVGHFLVLRQZHLQGHSHQGHQWO\UHYLHZWKHUXOLQJRIWKH +RPH &RPPLVVLRQ $FW LWVHOI GRHV QRW SXUSRUW WR EH WKH EDQNUXSWF\ FRXUW /RQJR Y 0F/DUHQ ,Q UH 0F&ODUHQ H[FOXVLYHPHDQVRIUHFRUGLQJDVHFXULW\LQWHUHVWLQDIL[WXUH )G WK&LU 7KHEDQNUXSWF\FRXUWj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jV ILOLQJ UHTXLUHPHQW ,QVWHDG LW VXFKH[FHSWLRQWKHUHFRUGLQJRIDPRUWJDJHLVLQHIIHFWLYH UHFRUGHGLWVPRUWJDJHZLWKWKH:H[IRUG&RXQW\5HJLVWHURI WRSURYLGHDVHFXULW\LQWHUHVW 'HHGVZKLFKXQGHUJHQHUDOUHDOSURSHUW\SULQFLSOHVZRXOG SHUIHFW LWV LQWHUHVW LQ DOO IL[WXUHV RQ WKH .URVNLHVj ODQG ,GLVDJUHH6HFWLRQ PXVWEHUHDGLQFRQMXQFWLRQ 6HTXLVWY)DELDQR1: 0LFK 7KLV ZLWKWKHRWKHUSURYLVLRQVRI$UWLFOH RIWKH8&& FODVK EHWZHHQ WKH 0+&$ DQG 0LFKLJDQjV JHQHUDO UHDO ,QUH.URVNLHHWDO 1R 1R ,QUH.URVNLHHWDO
7UXVWHH :H KROG WKDW &KDVH 0DQKDWWDQjV LQWHUHVW LV SURSHUW\ODZFUHDWHVWKHSUHFLVHLVVXHWREHUHVROYHGLQWKH DYRLGDEOH EHFDXVH WKH 7UXVWHHjV LQWHUHVW DV D VWDWXWRU\ FDVHEHIRUHXV MXGJPHQWOLHQFUHGLWRULVVXSHULRUWRWKDWRIDQXQSHUIHFWHG FUHGLWRU0,&+ &203 /$:6 E L SURYLGLQJ ,QWHUSUHWLQJWKH0LFKLJDQVWDWXWHVDQGUHDOSURSHUW\ WKDWm>D@VHFXULW\LQWHUHVWRUDJULFXOWXUDOOLHQLVVXERUGLQDWHWR ODZ WKHULJKWVRIDSHUVRQWKDWEHFRPHVDOLHQFUHGLWRUEHIRUH WKH WLPH WKH VHFXULW\ LQWHUHVW RU DJULFXOWXUDO OLHQ LV 7KHEDQNUXSWF\FRXUWSULPDULO\UHOLHGRQWKHIDFWWKDWWKH SHUIHFWHGl )HGHUDO /DQG %DQN RI 6W 3DXO Y %D\ 3DUN ILOLQJUHTXLUHPHQWRIWKH0+&$DQG0LFKLJDQUHDOSURSHUW\ 3ODFH,QF1:G 0LFK m$VQRWHGE\ ODZ FRQIOLFW ZKHQ LW FRPHV WR WKH PDWWHU RI SHUIHFWLQJ DQ WKH FLUFXLW FRXUW 1%'jV FODLP LV XQSHUIHFWHG DQG LV WKXV LQWHUHVWLQDPRELOHKRPHDIIL[HGWRUHDOHVWDWH7KLVFDXVHG GHIHDWHG E\ WKH MXGLFLDO OLHQV RI )HGHUDO /DQG %DQN DQG WKH EDQNUXSWF\ FRXUW WR ORRN DW SULQFLSOHV RI VWDWXWRU\ 3URGXFWLRQ&UHGLWl FRQVWUXFWLRQ UHJDUGLQJ FRQIOLFWLQJ VWDWXWHV ,QYRNLQJ WKH SULQFLSOH WKDW D VSHFLILF VWDWXWH WUXPSV D PRUH JHQHUDO RQH $VWKH7UXVWHHKDVSRLQWHGRXWWKHEDQNUXSWF\ODZJLYHV ZKHQ VWDWXWHV FRQIOLFW WKH EDQNUXSWF\ FRXUW KHOG WKDW WKH KLP WKH VWDWXV RI D MXGLFLDO OLHQ FUHGLWRU 3XUVXDQW WR 0+&$ZDVWKHVROHPHWKRGRISHUIHFWLQJDVHFXULW\LQWHUHVW 0LFKLJDQ ODZ DQ XQSHUIHFWHG VHFXULW\ LQWHUHVW OLNH &KDVH LQ D PRELOH KRPH UHJDUGOHVV RI LWV IL[WXUH VWDWXV ,Q UH 0DQKDWWDQjV LV DOZD\V VXEMHFW WR D MXGJPHQW OLHQ 0,&+ .URVNLH %5 %DQNU :' 0LFK &203 /$:6 E L DPHQGHG &KDVH FLWLQJ)UDQNY:LOOLDP$.LEEH $VVRF,QF1:G 0DQKDWWDQ GLG QRW GLVDJUHH ZLWK WKLV SDUW RI WKH 7UXVWHHjV 0LFK&W$SS IRUWKHSURSRVLWLRQWKDWDVSHFLILF DUJXPHQW LQVWHDG FRQWHQGLQJ WKDW LWV LQWHUHVW LV SHUIHFWHG VWDWXWH SUHYDLOV RYHU D PRUH JHQHUDO RQH ZKHQ VWDWXWHV %XW DV GLVFXVVHG DERYH VXFK D FRQWHQWLRQ UHTXLUHV D FRQIOLFW FRQYROXWHGUHDGLQJRIWKH0LFKLJDQVWDWXWHVWKDWZHEHOLHYH LVFRQWUDU\WRDSURSHUDQDO\VLVRIWKHDSSOLFDEOHSURYLVLRQVRI ,QGHHGWKH0+&$VSHFLILFDOO\DSSOLHVWRPRELOHKRPHV ERWKWKH0+&$DQGWKH8&& WKDWDUHSHUPDQHQWO\DIIL[HGWRUHDOSURSHUW\0,&+ &203 /$:6 J GHILQLQJDPRELOHKRPHDVDVWUXFWXUH ,,,&21&/86,21 mEXLOWRQDFKDVVLVDQGGHVLJQHGWREHXVHGDVDGZHOOLQJZLWK RU ZLWKRXW SHUPDQHQW IRXQGDWLRQ ZKHQ FRQQHFWHG WR WKH )RUDOORIWKHUHDVRQVVHWIRUWKDERYHZH5(9(56(WKH UHTXLUHGXWLOLWLHVl HPSKDVLVDGGHG 7KLVIDFWUHQGHUVPXFK GHFLVLRQ RI WKH GLVWULFW FRXUW DQG5(0$1' WKH FDVH ZLWK RI&KDVH0DQKDWWDQjVDUJXPHQWDERXWWKHIL[WXUHVWDWXVRIWKH LQVWUXFWLRQV WKDW WKH MXGJPHQW RI WKH EDQNUXSWF\ FRXUW EH .URVNLHVj PRELOH KRPH LUUHOHYDQW %HFDXVH WKH 0+&$ DIILUPHG FOHDUO\ DSSOLHV WR D SHUPDQHQWO\ DIIL[HG PRELOH KRPH WKH EDQNUXSWF\ FRXUW SURSHUO\ XWLOL]HG WKH UXOH RI FRQVWUXFWLRQ SHUWDLQLQJWRFRQIOLFWLQJVWDWXWHV,QRWKHUZRUGVWKHJHQHUDO UXOH WKDW D VHFXULW\ LQWHUHVW LQ D IL[WXUH FDQ EH SHUIHFWHG WKURXJKDSURSHUO\UHFRUGHGPRUWJDJHRQUHDOHVWDWHGRHVQRW JRYHUQZKHUHDVKHUHWKHUHLVDVSHFLILFVWDWXWHGHDOLQJZLWK PRELOHKRPHVHFXULW\LQWHUHVWV &KDVH0DQKDWWDQRQWKHRWKHUKDQGDWWHPSWVWRUHDGSDUWV RI 0LFKLJDQjV $UWLFOH RI WKH 8QLIRUP &RPPHUFLDO &RGH 8&& GHDOLQJ ZLWK IL[WXUHV DV EHLQJ LQ KDUPRQ\ ZLWK WKH ,QUH.URVNLHHWDO 1R 1R ,QUH.URVNLHHWDO
0+&$jVSURYLVLRQV7KLVDWWHPSWIDOWHUVKRZHYHUEHFDXVH &203 /$:6 DPHQGHG WKHGLVWULFWFRXUW DOOVHFXULW\LQWHUHVWVLQIL[WXUHVGRQRWKDYHWREHSHUIHFWHG GHWHUPLQHG WKDW WKLV DOWHUQDWLYH LV HTXDOO\ DSSOLFDEOH WR XQGHU$UWLFOH DVGRDOOVHFXULW\LQWHUHVWVLQPRELOHKRPHV SHUIHFWLQJDVHFXULW\LQWHUHVWLQDPRELOHKRPH XQGHU WKH 0+&$ &RPSDUH 0,&+ &203 /$:6 DPHQGHG ZLWK 0,&+ &203 /$:6 :H GLVDJUHH ZLWK WKH GLVWULFW FRXUWjV FRQFOXVLRQ IRU WZR G DQG DPHQGHG UHDVRQV )LUVW LW GLVUHJDUGV WKH 0+&$ SURYLVLRQ WKDW VHHDOVR,QUH%HQFNHU%5 %DQNU PDQGDWHV FRPSOLDQFH ZLWK LWV WHUPV LQ RUGHU WR SHUIHFW D :'0LFK m>7@KHVSHFLILFSURYLVLRQVRI>WKH@0RELOH VHFXULW\ LQWHUHVW LQ D PRELOH KRPH 0,&+ &203 /$:6 +RPH &RPPLVVLRQ $FW GLFWDWH KRZ OHJDO RZQHUVKLS LV G 6HFRQGO\ WKH NH\ $UWLFOH SURYLVLRQ DV WUDQVIHUUHGDQGLWJRYHUQVRYHUWKHPRUHJHQHUDOSURYLVLRQV ZRUGHGLQ H[SUHVVO\SURYLGHGWKDWmDVHFXULW\LQWHUHVWLQ RI WKH 8QLIRUP &RPPHUFLDO &RGHl )RU WKH EDQNUXSWF\ SURSHUW\ VXEMHFW WR WKH >0+&$@ FDQ EH SHUIHFWHG RQO\ E\ FRXUW WKLV UHDVRQLQJ ZDV SHUVXDVLYH DQG DSSOLFDEOH WR WKH FRPSOLDQFH WKHUHZLWK l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mRQO\l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jVFOHDULQWHQWWR KDYHWKH0+&$SURYLGHWKHH[FOXVLYHPHWKRGRISHUIHFWLQJ 7KH GLVWULFW FRXUW UHDVRQHG WKDW EHFDXVH WKH 0+&$ VXFK VHFXULW\ LQWHUHVWV ZKHWKHU RU QRW WKH PRELOH KRPH LV H[SOLFLWO\SURYLGHVWKDWDILOLQJSXUVXDQWWRLWVSURYLVLRQVLV DIIL[HGWRUHDOHVWDWH0,&+ &203 /$:6 J HTXLYDOHQW WR WKH ILOLQJ RI D ILQDQFLQJ VWDWHPHQW XQGHU WKH :HWKHUHIRUHILQGQRPHULWLQ&KDVH0DQKDWWDQjVDUJXPHQW 8&& WKLV PHDQV WKDW DOWHUQDWLYH PHWKRGV RI SHUIHFWLQJ VHFXULW\LQWHUHVWVDVUHFRJQL]HGE\WKH8&&DUHDSSOLFDEOHWR 7KH 7UXVWHHjV LQWHUHVW DV D MXGJPHQW OLHQ FUHGLWRU PRELOHKRPHV,QRWKHUZRUGVWKHGLVWULFWFRXUWFRQFOXGHG WUXPSV &KDVH 0DQKDWWDQjV XQSHUIHFWHG VHFXULW\ WKDW MXVW EHFDXVH ILOLQJ XQGHU WKH 0+&$ ZDV VXIILFLHQW WR LQWHUHVWLQWKHPRELOHKRPH SHUIHFWDVHFXULW\LQWHUHVWLQDPRELOHKRPHGLGQRWPHDQWKDW LW ZDV WKH H[FOXVLYH PHDQV RI SHUIHFWLQJ VXFK DQ LQWHUHVW )RUDOORIWKHDERYHUHDVRQVZHDUHSHUVXDGHGWKDW&KDVH %HFDXVH WKH 8&& UHFRJQL]HV WKDW D VHFXULW\ LQWHUHVW LQ D 0DQKDWWDQGLGQRWSURSHUO\SHUIHFWLWVVHFXULW\LQWHUHVWLQWKH IL[WXUH FDQ EH SHUIHFWHG E\ D PRUWJDJH RQ WKH VXEMHFW UHDO .URVNLHVjPRELOHKRPH7KLVUDLVHVWKHTXHVWLRQRIZKHWKHU HVWDWH LQ OLHX RI DQ $UWLFOH ILQDQFLQJ VWDWHPHQW 0,&+ &KDVH0DQKDWWDQjVXQSHUIHFWHGLQWHUHVWLVDYRLGDEOHE\WKH
Reference
- Status
- Published